Import collection refers to collecting payments from importers as per instructions of exporters’ banks and deliver relevant business documents to importers. Import collection may take the form of documents against payment (D/P) or documents against acceptance (D/A).
- Low costs. Lower bank fees will help you save financial costs and control costs;
- More convenience. Simpler procedures and operation compared with L/Cs;
- Few tied up funds. Exporters don’t need to make advance payments during goods preparation and shipping stages, and will be able to obtain cargo documents and deal with the goods immediately after making payment or payment commitments.
- Improve cash flows. Under documents against acceptance, importers will be able to obtain cargo documents and deal with the goods immediately after making payment or payment commitments. They can make the payments with cash inflows after sales without using any capital to effectively improve their financial status and solvency.
- Importers that intend to make the payment for goods in a way simpler and less costly than letters of credit.
- Importers who may adopt documents against payment (D/P) in case of sufficient current capital.
- Importers who may adopt documents against acceptance (D/A) if encountered shortage of current capital and expecting financing facilities from the exporter for payment of usance letter of credit, and both sides having a good cooperation relationship.